Palestines Ministry of Health in Gaza say Israeli forces targeted a group of people east of Khan Younis.
Israeli air strikes have killed at least seven Palestinians in what appeared to be a targeted hit near the city of Khan Younis in southern Gaza late on Sunday.
A Hamas official said violence erupted when a group of its members were fired upon by a passing car belonging to Israel forces.
Hamas members gave chase and witnesses said during the chase Israeli aircrafts fired over 40 missiles on the Hamas vehicle.
Among the dead were Hamas commanders Nour Baraka and Mohammad Al-Qarra, medical officials said.
TRT World's Iolo ap Dafydd brings the latest from the Occupied East Jerusalem.
The shelling continues in Gaza— Aya Isleem 🇵🇸 #Gaza (@AyaIsleemEn) November 11, 2018
Sunday's attack comes as Israel and Hamas, who controls Gaza, appeared to be making progress toward an unofficial ceasefire.
Israel last week allowed Qatar to deliver $15 million to Hamas, while Hamas scaled back its weekly demonstration along the Israeli border.
Israeli forces said in a brief statement "during an operational activity in the Gaza Strip, an exchange of fire evolved."
Shortly after the violence erupted, sirens warning of rocket fire from Gaza sounded in southern Israel, though there were no immediate reports of any damage or injuries.
Israeli minister Avigdor Lieberman was holding consultations at Israel's military headquarters to discuss the situation, his office said in a statement.